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Super Boom: Why the Dow Jones Will Hit 38,820 and How You Can Profit From It



Super Boom: Why the Dow Jones Will Hit 38,820 and How You Can Profit From It

Jeffrey A. Hirsch, Barry Ritholtz (Foreword by)

ISBN: 978-1-118-07535-7 March 2011 208 Pages


Prosper from the profitable opportunities of the next financial market super boom

In 1976, Yale Hirsch predicted a fifteen-year super boom—a move in the stock market of 500% or more. His forecast proved accurate as the market rose and continued upward, eventually posting growth over 1,000% just before the tech crash in 2000. In Super Boom, Jeffrey Hirsch, President of the Hirsch Organization and Editor in Chief of the Stock Trader's Almanac, unveils the next market expansion. Building on his father's research from 1976, Hirsch has discovered that meteoric rises in stock indices are due to specific catalysts predominantly outside of the financial markets.

History has a way of repeating itself, especially in the financial markets. The American economy, and subsequently the world economy, has always existed in a cycle of boom and bust: gold, grain, oil, technology, and most recently, real estate, have all bubbled and popped. The key to investing profitably is spotting macroeconomic historical trends and positioning to reap the benefits. Step-by-step, Hirsch puts together the pieces of this puzzle by revealing the central drivers of a super boom.

  • Examines how new cultural paradigm-shifting technologies, as well as peace between major wars, could fuel a super boom
  • Discusses how the massive injection of money by the government, in response to the global financial crisis and the Great Recession, as well as wartime spending, will eventually create an inflationary environment
  • The data and research found here is based on historical information and the boom-and-bust cycle of the past century

As markets and economies struggle over the next several years, remember to keep your eye on the future and get ready for the coming super boom and the next 500% move in the market. With this book as your guide, you'll benefit from the insights that only Jeffrey Hirsch can provide.

Foreword ix

Acknowledgments xiii

PART I Anatomy of a Super Boom

CHAPTER 1 The Boom Equation 3

The math behind the move

CHAPTER 2 A Strangled Economy 15

From slump to powerhouse

PART II The Fortune Tellers

CHAPTER 3 The History of Ignorance and the Ignorance of History 37

Dow 36,000 and the dangers of erroneous assumptions

CHAPTER 4 An Argument against Financial Calamity 49

The best case for and against all hell breaking loose

CHAPTER 5 Yale Hirsch and the 500 Percent Move 57

Discovering the boom pattern

PART III Booms and Busts of the Twentieth Century

CHAPTER 6 Panics, World War I, and the Roaring Twenties 81

From the Rich Man's Panic to the first recorded super boom

CHAPTER 7 Depression, World War II, and the Baby Boom 87

The greatest generation births a boom

CHAPTER 8 Vietnam, Stagflation, and the Information Revolution 95

The greatest boom ever: bigger, faster, longer, higher

PART IV The Prodigal Pattern Returns

CHAPTER 9 Inflation 111

The history and impact of the Consumer Price Index

CHAPTER 10 Investment Ideas and Strategies 129

How to profit now and during a super boom

APPENDIX A Yale Hirsch's 1977 Stock Picks 149

APPENDIX B 1977 Smart Money Newsletter Reprinted 161

Key Terms 171

About the Author 175

Index 177